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Astana, Kazakhstan • 25 July 2022

Estonia Competes With Latvia for Kazakh Coal

Estonian railway company introduces cheaper rates to become attractive

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Ivo Kruusamägi
Ivo Kruusamägi

Eesti Raudtee, or Estonian Railways, has introduced cheaper rates for Kazakh coal in order to attract transit to Estonia, Qazmonitor reports citing ERR News.

The Estonian railway company is currently competing with Latvian Railways to move a volume of 30,000-50,000 tons of coal from Russia and Kazakhstan on a monthly basis. But in order to do that, the company must adjust its prices.

In June, Eesti Raudtee agreed to a request by Estonian state-owned freight carrier Operail to lower its infrastructure usage fee for coal to €6-7 per ton to match Latvia's rates. 

International sanctions against Russia have reduced the volume of railway cargo transitting Estonia by 60%.

The cheaper rate remains tentative. Eesti Raudtee currently estimates the coal transit from Kazakhstan to bring a yield of €30,000 per 30,000 tons of coal. Estonia has two terminals with the capacity for handling coal -- one in Muuga that has handled up to 50,000 a month in the past and a smaller terminal in Sillamäe.

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